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The benefits of long-term care insurance

On Behalf of | May 25, 2022 | Estate Planning

Nobody ever wishes that they will end up in a nursing home; however, as people age, the likelihood increases that at some point, they will need some type of skilled nursing services.

When that happens, how will you pay for it? Medicare may cover up to 100 days for qualified stays, but what about after that? Will you lose everything you have worked for to cover the cost of a nursing home? Will you have to spend your children’s inheritance?

As the saying goes, “nobody ever plans to fail; they just fail to plan.” Having long-term care insurance is part of your plans for the future.

What is long-term care insurance?

A long-term care insurance policy can help cover the costs for various services, including:

  • Adult daycare
  • In-home health care services
  • Nursing homestays
  • Assisted living or personal care homes

Long-term care insurance helps prevent the need to spend down your assets to be eligible for New York State Medicaid and protects them for you and your loved ones.

When choosing a long-term care policy, you have a few options, and each one has its benefits and drawbacks. The three main types of policies to consider are:

  • Traditional stand-alone policies.
  • Policies that are a hybrid between life and long-term care.
  • Annuities with long-term care benefits.

One thing that holds many people back from purchasing long-term care insurance is the high cost of the premiums. However, the Department of Health and Human Services states that anyone 65 and older has a 70% chance of needing long-term care.

If you have not considered making long-term care insurance part of your estate plan, now is the time to do so. As with any time of insurance, you hope you never need it, but you will have peace of mind knowing that you are protecting your assets for yourself and your family.